Services
This query is : Resolved
22 June 2017
Whether an unregistered person can provide services to local authorities under gst
22 June 2017
Yes can provide. Registration is not mandatory in such cases
22 June 2017
Yes you can provide such services.
Message likes :
4 times
22 June 2017
Whether local authorities have to charge gst on reverse charge basis
22 June 2017
Such services are exempt .
22 June 2017
Please provide me the details where it is mentioned in the Act/Rules/Exemption List
25 July 2025
Under GST, services provided to local authorities can indeed be exempt, but it depends on the type of service provided. Let me explain your question in parts:
✅ 1. Can an unregistered person provide services to local authorities under GST?
Yes.
As per Section 23 of the CGST Act, registration is not mandatory for a person:
whose aggregate turnover is below the threshold limit (₹20 lakh / ₹10 lakh for special category states), and
who is providing only exempted services.
So, an unregistered person can provide services to local authorities, provided GST registration is not otherwise required (i.e., not making taxable supply beyond threshold, or not falling under compulsory registration under Section 24).
✅ 2. Are services to local authorities subject to reverse charge under GST?
Only specific services are notified under reverse charge mechanism (RCM).
As per Notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017 (as amended), services provided by an unregistered person to a government or local authority are NOT generally under RCM—except for certain services like:
Services by a Goods Transport Agency (GTA),
Legal services by an advocate,
Services by a director,
Services by an arbitral tribunal, etc.
So RCM is not universally applicable for all services to local authorities.
✅ 3. Are services to local authorities exempt under GST?
Some services provided to local authorities are exempt under:
📜 Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017
This is the main exemption notification under GST for services.
🔹 Entry No. 3 of the Notification:
"Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution are exempt."
So, if your service is:
A pure service (not involving goods),
Provided to a local authority, and
In relation to functions under Article 243G (e.g., sanitation, water supply, public health, etc.),
then it is exempt from GST.
📌 If you’re doing works contract or composite supply involving goods, this exemption may not apply.
🔎 Reference Documents:
Notification No. 12/2017 – Central Tax (Rate) – Services Exempt from GST
Notification No. 13/2017 – Central Tax (Rate) – Reverse Charge Notifications
Section 23 of CGST Act – Persons not liable for registration
✅ Summary Table:
Question Answer
Can unregistered person provide services to local authority? ✅ Yes
Is GST registration mandatory? ❌ Not if turnover < threshold or service is exempt
Are services exempt? ✅ If it qualifies under Entry 3 of Notification 12/2017
Is RCM applicable? ❌ Not in general, unless under specific notified cases
✅ 1. Can an unregistered person provide services to local authorities under GST?
Yes.
As per Section 23 of the CGST Act, registration is not mandatory for a person:
whose aggregate turnover is below the threshold limit (₹20 lakh / ₹10 lakh for special category states), and
who is providing only exempted services.
So, an unregistered person can provide services to local authorities, provided GST registration is not otherwise required (i.e., not making taxable supply beyond threshold, or not falling under compulsory registration under Section 24).
✅ 2. Are services to local authorities subject to reverse charge under GST?
Only specific services are notified under reverse charge mechanism (RCM).
As per Notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017 (as amended), services provided by an unregistered person to a government or local authority are NOT generally under RCM—except for certain services like:
Services by a Goods Transport Agency (GTA),
Legal services by an advocate,
Services by a director,
Services by an arbitral tribunal, etc.
So RCM is not universally applicable for all services to local authorities.
✅ 3. Are services to local authorities exempt under GST?
Some services provided to local authorities are exempt under:
📜 Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017
This is the main exemption notification under GST for services.
🔹 Entry No. 3 of the Notification:
"Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution are exempt."
So, if your service is:
A pure service (not involving goods),
Provided to a local authority, and
In relation to functions under Article 243G (e.g., sanitation, water supply, public health, etc.),
then it is exempt from GST.
📌 If you’re doing works contract or composite supply involving goods, this exemption may not apply.
🔎 Reference Documents:
Notification No. 12/2017 – Central Tax (Rate) – Services Exempt from GST
Notification No. 13/2017 – Central Tax (Rate) – Reverse Charge Notifications
Section 23 of CGST Act – Persons not liable for registration
✅ Summary Table:
Question Answer
Can unregistered person provide services to local authority? ✅ Yes
Is GST registration mandatory? ❌ Not if turnover < threshold or service is exempt
Are services exempt? ✅ If it qualifies under Entry 3 of Notification 12/2017
Is RCM applicable? ❌ Not in general, unless under specific notified cases
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